Location: Chicago-Joliet-Naperville, IL | Metro: Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,380 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $424,282 | 0.39% | F |
| 3BR | $2,120 | $484,096 | 0.44% | F |
| 4BR | $2,420 | $716,441 | 0.34% | F |
| 5BR | $2,807 | $877,255 | 0.32% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 60439 (Lemont, IL) presents a unique opportunity for both landlords and small-portfolio investors. The median home value stands at $569,538, indicating a stable housing market where property values have held steady. This stability is further reinforced by the fact that only 0.2% of listings have been reduced, which suggests that sellers are confident in their pricing and the demand for homes in Lemont remains robust.
The median days on market (DOM) of 15 days signals strong buyer interest and quick turnover, which can be attributed to the area's desirability and consistent demand. This short DOM period implies that there is little need for price reductions, thereby maintaining a high level of pricing power for homeowners and investors alike.
On the rental side, the Federal Market Rent (FMR) for ZIP 60439 in fiscal year 2024 is projected to be $1,640, while the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), currently averages around $1,950. This gap between the FMR and ZORI suggests that the rental market is slightly outperforming the federal estimates, indicating a healthy rental environment with potential for modest growth.
For long-term hold investors, the setup in Lemont points towards a conservative appreciation thesis. Given the stable median home value and the minimal reduction in listing prices, it is reasonable to expect continued stability rather than rapid appreciation. However, the consistent demand for both ownership and rental properties supports the idea that the value of investments will remain solid, providing a reliable base for capital preservation and moderate growth over the next 12-24 months.
The combination of a stable home value, quick sales, and a rental market that slightly exceeds federal projections creates an environment where investors can leverage their assets effectively. They should focus on properties that offer good rental yields, given the current disparity between FMR and ZORI, and prepare for a market that favors those who can maintain quality and appeal in both their rental and sale offerings.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.